Argentina - 02

Argentina: Vaca Muerta Labor Pact: Promise and Potential for Disruptions

After months of negotiations, on 10 January President Mauricio Macri announced a major labor pact between the federal government, the government of Neuquen province, oil companies and oil workers to bring down costs and attract investments to the Vaca Muerta field this year. The pact guarantees $5bn in investment in 2017 and a commitment by state-owned YPF and partner companies to hire more workers whenever production increases. The main union involved, the Union for Private Oil Workers of Rio Negro, Neuquen and La Pampa, has allegedly accepted a lower number of employees per oil well and to forfeit charging extra hours under certain circumstances (such as for time spent commuting to a well and for staying overnight at the work site), among other points.

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